European car sales drop 2% - report

New car registrations in Europe fell 2 per cent in May to 1

New car registrations in Europe fell 2 per cent in May to 1.4 million units despite strong sales in eastern Europe, Germany's VDA car industry association said.

Compared with the same month last year, new car registrations fell 2.5 per cent in western Europe and increased 2 per cent in new member states of the European Union, a VDA statement said today.

Registrations, which closely track car sales, fell 11 per cent in Germany, 3 per cent in France and 2 per cent in Britain. Spain remained stable and Italy gained 7 per cent, VDA said.